Agenda item

A report form Leader of the Council and Cabinet Member for Finance and Growth.

The Leader of the Council and Cabinet Member for Finance and Growth submitted a report outlining the forecast financial position of the Council at the end of 2020/21 based on the information known at the end of the third quarter, 31 December 2020. The report set out that the Council is forecasting an underspend of £0.053m which is an improvement on the position at the end of September by £6.983m. The report included the position for both revenue and capital and provided an analysis of the variances, both under and overspending. The report also set out the performance on the treasury management activity, including investments and borrowing, against the agreed prudential indicators.

It was reported that as a result of the continuation of the pandemic, the additional measures that have been put in place, both nationally and across the Greater Manchester region, in response to this may impact further on demand for services and loss of income. The report highlighted that there remained some significant challenges to forecasting as a result of COVID-19 and explained that the financial position will continue to be closely monitored throughout theyear.

In response to the COVID-19 crisis the government has made available £102.558m to Bury Council to cover additional costs that will be incurred as a result of specific grant criteria. The funding allocations that were made available have been reflected in the forecast out-turn and a full summary was appended to the report, reflecting all grants received up to 18 January 2021.

Questions and comments were invited from the Committee and the following issues were raised:

• In response to a question concerning the unknown factors around levels of grant income, the Leader acknowledged the uncertainties and explained that best assumptions were made on a range of scenarios, with ongoing work done through internal monitoring, submissions to Ministry of Housing, Communities and Local Government (MHCLG) and collaborative work with Greater Manchester Treasurers.

• With regard to the issue of non-achieved savings targets, the Leader explained that risks were identified early and alternative proposals were developed and stress tested as a means of making up any shortfall.

• The Leader confirmed that following the outcome of the budget conversation it had been decided not to pursue the proposal to withdraw food waste liners.

• In response to a question concerning £96k spent on Bury Market, the Leader outlined that this was part of a multi-year project, with the initial monies being spent on design, modelling and preparatory works.

• The Leader confirmed that the Council was still pursuing government funding following the damage and impact from Storm Ciara.

• In response to a question from the Chair concerning the latest grants position, the Director of Financial Transformation and S151 Officer referred to 4 new grants recently approved by the Emergency Powers Group which equated to approximately £7m on top of the figures reported.

• With regard to potential support for home based businesses, the Leader explained that if the criteria for grants was opened up, with appropriate safeguards, the Council would look to roll out support.

• In response to a question from Councillor Harris, the Leader undertook to provide an update in respect of the council owned property in Lytham.

• With regard the issue of Civic Halls, Members of the Committee expressed concerns about the potential loss of the facilities and highlighted that the staff consultation had not yet ended. The Leader explained that no decision had been taken and any proposal would be taken through Cabinet. If proposal not to re-open the Civic Halls was not pursued this would come out of the budget and alternative savings options would be needed.

• In response to concerns that the Council had allocated monies to purchase Diesel rather than electric refuse wagons, the Executive Director of Operations explained that some of the vehicles were needed very early and a decision had been made to purchase the cleanest diesel vehicles on the market. In response to a further question about why we had not been included in the Manchester Council programme of purchasing electric vehicles it was stated that Bury was not fully closed to some of its vehicles being included within this programme in the future. It was confirmed that the Council’s van and transit fleet would move towards electric and that electric charging points will be installed at Bradley Fold.

• With regard to unspent monies in respect of the Radcliffe Regeneration, the Leader explained that this was largely an issue of how the spending had been profiled with more detail being set out in the Capital Programme report.

• The Leader undertook to provide the Chair with a response clarifying what the £300k strategic acquisition referred to as part of the Prestwich Regeneration. 

It was agreed:

1. That the report be noted.</AI3>

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